Leveraged buyout analysis from the target's own numbers

The analyst chooses every add-back, and the spread shows each one beside the reported line it adjusts, with the period and the supporting document attached. Management's adjustments and the sponsor's sit in separate columns in the spreadsheet, so the committee sees whose number is whose.

A write-in adjustment can be a formula over the printed figures, such as the average of three years of repairs, and the spread says where the number came from.

Debt to EBITDA, net debt to EBITDA, debt to equity, interest coverage and the implied cost of debt read off the spread, each one opening into the rows that produce it. Free cash flow conversion and capital expenditure against depreciation and amortization show how much of the earnings turns into cash the debt can be paid from.

Every ratio is derived from the reported lines, so a reviewer can open the figure and see the exact rows, periods and pages behind it.

A pro forma coverage view takes the latest year the target reported and the proposed debt service, interest and principal, and shows whether that year's cash flow carries it. The historical years stand on their own, with no proposed debt on them.

Change the debt quantum, the rate or the amortization and the pro forma view follows. The historical basis does not move.

Continue in the spreadsheet with formulas that cite the spread. Lay out the sources and uses, the projected periods and the exit case, and read the returns with IRR and XIRR, with the historical inputs still linked to their pages.

Set up the scenarios the committee wants to compare and keep the assumptions labeled apart from the reported figures. The team chooses the leverage, the pricing and the exit. SpreadSpace keeps the evidence under every case.

Upload the memo your committee reads, or the financing memorandum your lenders receive, as a PDF or a Word document, and SpreadSpace reproduces its structure as a reusable template.

Bring the spread, the adjusted EBITDA schedule, the leverage analysis and the returns case into it as exhibits. Reviewers open a figure in the exhibit and land on its source, and finalizing records the version the committee saw.

Use the native workspace or embed the review in the deal management system your firm already runs. An integration can retrieve finalized spreads and memo renders through the API.